sales activity remains elevated through October
As housing supply waned throughout King County in October, the demand for homes swelled and yielded the largest number of sales in any October in at least 15 years. As a result, home prices have continued to rise through the pandemic.
fact that more 3+ bedroom condos sold in October (165) across King County than in any month since August 2006—itself a reflection of the pandemic-induced marginal shift towards larger homes. Despite the clear negative economic impacts associated with the country’s, and state’s, collective response to the pandemic, strong demand and a weak supply mechanism has made it harder for new buyers to get into home ownership in recent months. As we look ahead to the end of 2020 and into 2021, expect demand tailwinds to slow; even if supply doesn’t expand appreciably, this should provide some price relief.
On the surface, housing markets across North America seem to be defying the odds as they tally more and more sales alongside a seemingly unending rise in values—despite economic conditions that are the most challenged since the Great Recession of 2008/09. Here in King County this dynamic certainly rings true, with the 3,791 sales in October representing the most in any October in at least the past 15 years (on the heels of a record number of September sales, which we reported on in last month’s rennie review). Comparisons to more recent activity show that October’s sales were 1% higher than in September, 30% more than a year ago, and 39% above the past-decade average for the month. Within King County, demand was robust in both Seattle and Bellevue, with the former
registering 1,221 sales in October (29% more than in October 2019) and the latter counting 304 transactions (113% higher than, or more than double, that of last year). Notably, Bellevue’s October sales count was the highest in any month (not just in Octobers) in the past 15 years. Strong sales coupled with housing inventory across King County that contracted sharply in October—the number of homes for sale was down 7% versus September, 19% versus October 2019, and 43% versus the past- decade October average--has yielded prices that continue to rise. Since the beginning of the onset of the pandemic in March, for example, the median residential price in King County is 3% higher, while that of condos is up 4%. Similarly, the average residential sold price is up 4% (through October), while that of condos is a whopping 29% higher. This latter figure reflects the
Copyright © 2020 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of November 2, 2020. All data from Real Estate Board of Greater Vancouver and Fraser Valley & Rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E. 3
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